Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
NEW YORK - On Thursday, Gildan Activewear Inc . (NYSE:GIL) reported better-than-expected second-quarter results, driven by strong activewear sales and improved margins.
The apparel manufacturer’s shares edged up 0.49% in after hours trading following the release.
The Montreal-based company posted adjusted earnings of $0.97 per share, surpassing analysts’ expectations of $0.95. Revenue reached $919 million, exceeding the consensus estimate of $907.46 million and representing a 6.5% increase from $862 million in the same quarter last year.
Activewear sales, which account for 87% of total revenue, jumped 11.6% YoY to $822 million, reflecting higher sales volumes, favorable product mix, and higher net selling prices. The company gained market share in key growth categories and saw positive response to recently introduced products featuring innovations like its new Soft Cotton Technology.
"Our strong overall competitive positioning allowed us to continue benefiting from recent changes in the industry landscape," said Glenn Chamandy, President and CEO. "We’re seeing solid momentum with North American distributors and National account customers."
Gross margin improved to 31.5% from 30.4% in the prior-year quarter, primarily due to lower raw material and manufacturing costs, as well as favorable pricing. Adjusted operating margin remained steady at 22.7%.
The company’s hosiery and underwear category saw sales decline 23.3% to $96 million, reflecting less favorable volume and mix, broader market weakness, and the phase-out of the Under Armour (NYSE:UA) business.
For fiscal year 2025, Gildan expects adjusted earnings per share between $3.40 and $3.56, compared to the analyst consensus of $3.47.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.